Hamas has agreed to a proposal by US special envoy Steve Witkoff for a Gaza ceasefire, a Palestinian official close to the group told Reuters on Monday, paving the way for a possible end to the war with Israel.

The new proposal, which sees the release of ten hostages and 70 days of truce, was received by Hamas through mediators.

"The proposal includes the release of ten living Israeli hostages held by Hamas in two groups in return for a 70-day ceasefire and a partial withdrawal from the Gaza Strip," the source said.

The proposal also sees the release of a number of Palestinian prisoners by Israel, including hundreds serving lengthy prison terms.

There was no immediate comment from Israel.

On March 18, Israel effectively ended a January ceasefire agreement with Hamas and renewed its military campaign in Gaza. Hamas and allied factions began firing rockets and attacks two days later.

Hamas has said it is willing to free all remaining hostages seized by its gunmen in attacks on communities in southern Israel on October 7, 2023, and agree to a permanent ceasefire if Israel pulls out completely from Gaza.

Israeli Prime Minister Benjamin Netanyahu has said Israel would only be willing to agree to a temporary ceasefire in return for the release of hostages, vowing that war can only end once Hamas is eradicated.

Israel launched an air and ground war in Gaza after Hamas militants' cross-border attack on October 7, 2023, which killed 1,200 people by Israeli tallies with 251 hostages abducted into Gaza.

The conflict has killed nearly 54,000 Palestinians, according to Gaza health authorities, and devastated the coastal strip. Aid groups say signs of severe malnutrition are widespread.